Business
RBI fighting a lost INR battle, say analysts
A stronger USD would imply higher global inflation exported by the US, lower global trade, cry for reverse FX wars, and pressure on equities and emerging markets assets, Emkay Global Financial Services said in a report.
The global narrative is undergoing a substantial regional rotation in favour of the US exceptionalism, even as we are unlikely to see the US growth upgrades. The theme of dollar dominance is still alive.
While GBPINR is down 4 per cent, USDINR is up 2 per cent since the September FOMC meeting — one of the worst EM hits.
“King Dollar is still on the throne… with RBI fighting a lost INR battle,” Emkay Global Financial Services said in the report.
“INR readjustment is catching up faster than peers, as it was held stronger in past adjustments by policy intervention. India’s massive FX defence, amounting to more than US$100bn estimated since October-21 (spot + forwards) means that the war-chest is falling faster than the pace at which the war is fading. Amid emerging regional imbalances, we reiterate that the RBI will eventually let the exchange rate adjust to new realities, albeit in an orderly manner, letting it act as an automatic macro stabilizer to the policy reaction function”, the report said.
The GBP free-fall and massive FX vols have only added another complicated layer to DM FX order, adding credence to our long stated view that dollar dominance is here to stay even as we are unlikely to see US growth upgrades in this downcycle.
US exceptionalism rub-off has finally let the INR loose, despite RBI’s active FX intervention — an indication of the impending range shift. INR readjustment has been swift, and the RBI will eventually need to let the exchange rate adjust to these new realities and act as a natural macro stabiliser, albeit orderly, the report added.
The direct macroeconomic impact of the UK shocks on India will be limited via the trade impact, but global risk will likely weigh on India in the near term. GBP weakness may aid Tata Motors on the UK operational front, albeit this will be countered by near-term MTM losses on its USD-denominated debt. In large-cap ITeS, TCS and Wipro lead in terms of GBP exposure.
Business
India-EFTA trade pact opens new opportunities for Norwegian investment across key sectors

India’s strong economic growth trajectory and the implementation of the India-EFTA Trade and Economic Partnership Agreement (TEPA) are creating significant opportunities for Norwegian investors, particularly in manufacturing, renewable energy, infrastructure, financial services and the digital economy, according to industry insights.
With GDP growth projected to remain around 6.5 per cent annually through 2030, India is widely expected to become the world’s third-largest economy by the end of the decade, according to EY India report.
Analysts attribute this outlook to strong domestic consumption, rising investments, ongoing infrastructure development and reforms aimed at improving the ease of doing business.
The India-EFTA TEPA, which came into effect in October 2025, is being viewed as a major milestone in India-Norway economic relations.
The agreement seeks to promote trade liberalisation, facilitate investment flows and deepen cooperation in areas such as innovation, sustainability and advanced technologies.
The pact includes investment commitments of $100 billion over 15 years and is expected to support the creation of one million direct jobs in India, aligning with the country’s broader goals of expanding manufacturing capacity and strengthening its position in global value chains.
Industry experts believe the agreement creates a strong framework for Norwegian companies to expand their presence in India by combining Norway’s expertise in technology, sustainability and capital-intensive industries with India’s large market and growth ambitions.
Several sectors have been identified as priority areas for collaboration, including manufacturing, renewable energy, oil and gas, maritime services, seafood processing, information and communication technology (ICT), fintech and financial services. These industries are expected to benefit from increasing bilateral cooperation under the TEPA framework.
The rapid expansion of India’s digital economy and digital payments ecosystem is also creating opportunities for Norwegian companies seeking exposure to one of the world’s largest and fastest-growing consumer markets.
At the same time, India’s policy measures aimed at attracting foreign investment are expected to provide a supportive environment for long-term investors, as per the report.
Business
Delhi protests put business worth Rs 400 crore at daily risk, exposure may reach Rs 4,000 crore in 10 days: CAIT

Protests in Delhi could put business transactions worth over Rs 400 crore at risk every day, with the potential exposure reaching Rs 4,000 crore over ten days if disruptions persist, Confederation of All India Traders (CAIT) Secretary General and Chandni Chowk MP Praveen Khandelwal said on Sunday.
Expressing concern over the economic impact of prolonged protests, Khandelwal said disruptions to traffic, transportation, customer movement and market accessibility could significantly affect the capital’s commercial activities, particularly during the crucial festive and wedding season.
He clarified that the figures represent indicative estimates of business activity at risk and not verified actual losses.
According to Khandelwal, Delhi’s estimated average daily business turnover stands at approximately Rs 2,200 crore. Even a 10 per cent decline in business activity could affect transactions worth Rs 220 crore daily, while a 15 per cent decline could put Rs 330 crore at risk. If the disruption reduces business activity by 20 per cent, the amount at risk could rise to Rs 440 crore per day.
Based on these estimates, the cumulative exposure could approach Rs 4,000 crore over ten days if disruptions continue at the higher end of the projected range.
Khandelwal emphasised that while the Constitution guarantees citizens the right to freedom of speech and peaceful assembly, traders must also be able to conduct their businesses and earn their livelihoods without avoidable disruptions.
“Delhi is not merely the national capital; it is one of the country’s most important centres of wholesale distribution, retail trade and commercial activity. Its markets connect manufacturers, distributors, retailers and consumers across India. Any prolonged disruption in Delhi therefore has a cascading impact on supply chains, business transactions and livelihoods far beyond the city,” Khandelwal said.
“The right to protest and the right to trade are both integral to a functioning democracy. Protecting one should not mean disregarding the other. The larger public interest demands a responsible approach in which democratic expression, the rule of law, economic activity and the livelihood of millions of people are all duly respected,” Khandelwal noted.
Business
TN announces Rs 2 per kg incentive for cooperative ration shop onion sales

Salespersons at ration shops run by cooperative societies will receive an incentive of Rs 2 for every kilogram of onions sold under an initiative aimed at controlling retail prices and ensuring access to quality produce at reasonable rates.
The incentive was announced in a procedural order issued by Registrar of Cooperative Societies, Latha. It recognises the additional responsibilities undertaken by salespersons handling onion distribution alongside their regular ration shop duties.
According to the order, onions were procured in three phases from the National Agricultural Cooperative Marketing Federation of India (NAFED) and the National Cooperative Consumers’ Federation of India (NCCF). The procurement was undertaken to help check rising onion prices in the open market. The onions are being sold to the public through ration shops operated by cooperative societies.
The arrangement is intended to make quality onions available at fair prices while using the existing cooperative distribution network to reach consumers.
Under the order, the incentive payable to each salesperson will depend on the quantity of onions sold. The prescribed rate is Rs 2 per kilogram, linking payment directly to the volume handled through sales at the participating shops.
The Registrar’s order lists several additional tasks associated with the initiative. These include receiving onion consignments, storing the produce, sorting it, weighing quantities for customers, conducting sales and maintaining the related sales accounts. These responsibilities involve work beyond the routine distribution of ration commodities.
The incentive is intended to encourage salespersons to undertake the additional duties required to carry out onion sales through cooperative outlets. The amount due to eligible salespersons will be credited directly to their bank accounts through the Electronic Clearing Service (ECS), according to the order.
Payments will therefore be made through bank transfers based on the quantity sold. The measure combines consumer relief with an incentive for the staff responsible for implementing the sales programme.
While the procurement and distribution arrangement seeks to contain the impact of higher market prices, the additional payment acknowledges the work involved at the retail level. The order specifies a uniform incentive rate for onion sales conducted through the participating cooperative ration shops.
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